Central Banking Model Needs to End – Heading to Japan-Style Zombification

Ed.’s note: Japan’s central bank is committed to purchasing roughly ¥6 trillion (roughly $52 billion) every year of ETFs (exchange-traded funds) and stocks making these purchases since 2013. This means the Central Bank of Japan is printing up whatever amounts of currency it deems necessary to purchase assets in Japan with no end in sight. Readers can go to the Central Bank of Japan’s website to keep track of these almost daily purchases of ETFs.

Bank of Japan Monetary Policy – Purchases of ETFs and J-REITs

Purchases of ETFs and J-REITs

The Central Bank of Japan owns round 75% of all ETFs on Japan’s stock exchange and is the largest owner of corporate stocks in Japan. How else can this be explained except as insanity? Here is a private central bank printing up billions in money (some call it “money”) every month at will and as much as they want basically, and then turning around buying up pretty much everything in Japan with this same money. And this has been going on since 2013 like it is perfectly acceptable with hardly any opposition or anyone caring about the long term detriment of this monetary policy. The Central Bank of Japan is making unlimited purchases and costs them nothing to accomplish. Japan is running the biggest scam of all and the most amazing thing is, it’s the biggest scam in the world.

Japan Now Losing Nearly Half a Million People a Year. Record Immigration Barely Making a Dent

Japan’s central bank is printing up as much money as it wants, then turning around and buying up all the assets in Japan. Who wouldn’t want a business like this where you can print up any amount of money you want then use it buy everything with it? Central banking is theft. Central banking is central planning and Japan’s central bankers are proving this every time Japan’s central bank purchases ETFs and stocks. All this money being printed up in Japan is then forced on the Japanese people and they have no way out. They are then paying increasing taxes which is just extortion if truth be told. Extortion because it creates demand for this fiat currency when Japanese people are forced to pay extortion fees on this same fiat currency. This can and will end in disaster when this system hyper inflates. In Japan, this is essentially the complete take over of all assets in Japan by people associated with Japan’s central bank who basically produce nothing except more fiat money.

This is the central bank plan: to own everything then turn people in respective countries into zombies.

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Source: Bloomberg

As Japan Stocks Stabilize, BOJ’s ETF Buying Is at Lowest Since 2016

By Keiko Ujikane and Toshiro Hasegawa | March 14, 2019

The Bank of Japan may be paring purchases of exchange-traded funds to take advantage of the stock market’s stability.

On each of the four days that it conducted operations this month, the BOJ bought 70.2 billion yen ($631 million) of regular ETFs tracking Japanese shares. That was the lowest daily amount since the central bank doubled its annual buying target in July 2016.

Analysts point out that the reduction doesn’t signal the central bank is tapering its ETF buying program, as the BOJ has said that it may increase or decrease purchases depending on market conditions. In fact, an increasing number of economists see additional stimulus as the next policy step, while they are unanimous in forecasting no change at this week’s board meeting.

Still, the cut in ETF purchases may signal the BOJ’s desire to taper buying when market conditions allow, according to Masahiro Ichikawa, a senior strategist at Sumitomo Mitsui Asset Management in Tokyo. Most of the economists in a Bloomberg survey still expect the BOJ to eventually tighten policy, though they have been pushing back the timing for this change.

“This isn’t stealth tapering,” Ichikawa said. “Although the BOJ hasn’t changed its stance that it would buy promptly when the markets sway considerably, this could indicate its basic position that it wants to reduce ETF buying whenever possible.”

Please go to Bloomberg to read the entire article.

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Source: Zero Point Asia

The Developed World Is Headed for a Japan-Style Zombification

Japan has perfected the art of managing decline while maintaining the illusion that the status quo is solid and permanent

by Charles Hugh Smith | 14 Apr 19

A recent theme in the financial media is the Japanification of Europe. Japanification refers to a set of economic and financial conditions that have come to characterize Japan’s economy over the past 28 years: persistent stagnation and deflation, a low-growth and low-inflation economy, very loose monetary policy, a central bank that is actively monetizing debt, i.e. creating currency out of thin air to buy government debt and a government which funds “bridges to nowhere” and other stimulus spending to keep the economy from crashing into outright contraction.

The parallels with Europe are obvious, but they don’t stop there: the entire world is veering into a zombified financial, economic, social and political status quo that is the core of Japanification.

While most commentators focus on the economic characteristics of Japanification, social and political stagnation are equally consequential. If we only measure economic/financial stagnation, it appears as if Japan and Europe are holding their own, i.e.maintaining the status quo via near-zero growth and near-zero interest rates.

But if we measure social and political decay, the erosion is undeniable. Here’s one example. Few Americans have access to or watch Japanese TV, so they are unaware of the emergence of the homeless as a permanent feature of urban Japan. The central state propaganda media is focused on encouraging tourism, a rare bright spot in Japan’s moribund economy, and so you won’t find much media coverage of homelessness or other systemic signs of social breakdown.

If you watch Japanese detective / police procedural dramas, however, you’ll find constant references to homeless people and homeless encampments: detectives seek witnesses to a crime in the nearby homeless encampment; a homeless man living in an abandoned warehouse is found murdered, etc.

Here’s the core dynamic of zombification / Japanification: the top 25% are doing whatever is necessary to maintain the status quo because it works well for them, but the system is failing the bottom 75%, who must be politically, socially and economically neutered so they can’t upset the apple cart.

Please go to Zero Point Asia to read the entire article.

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Related:

REFILE-Bank of Japan’s ETF buying this year reaches 6 trln yen target

Bank of Japan’s ETF buying hits yearly record

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